SOL 4HR Analysis – Will the Bull Channel Breakout Continue!?
Solana has broken out of the 4HR bull channel and is beginning to pull back to the channel top. Contact with the channel top is a crucial moment in deciding which direction the price is likely to go. A bull signal bar followed by a 4HR confirmation bar (bull bar closing near its top) is what we're looking for to remain long. A bear bar closing near its low below the channel top gives us the inverse indication, that the price will pull back into the channel.
1. Bull Channel means we should Always be Long.
2. The channel breakout needs to be confirmed
3. There is a gap between current price and 30EMA/200EMA
4. Bitcoin has touched Weekly Channel Resistance
5. RSI is overbought. A weak indicator on its own, but supports #2-#4
Wait for the confirmation in either direction before trading this. We need more information before we can adequately manage a trade with good probability.
As always, trade at your own risk, you are responsible for your trades. I hope this analysis was insightful and useful.
Trade wisely and let us know what you think in the comment section below!